Recently, our non-profit organisation has been receiving requests from corporations who want to conduct CSR programmes with us and donate funds to us, for "invoices" corresponding to the donated amount.
When told that as a general rule, we do not issue invoices, the explanation given is that the "Accounts Department" won't approve payment unless our organisation is registered as a vendor on their procurement system, and an official "invoice" is issued.
This sort of response puts non-profit organisations in a rather precarious position, from a tax as well as an accounting perspective. By right, non-profit organisations should not have to register as "vendors" on any procurement portal. If the corporation is donating the funds, the non-profit organisation receiving the funds should not be treated as a supplier or vendor.
Non-profit organisations faced with such requests from corporations may wish to delve deeper into the underlying reasons. Perhaps, there could have been a misunderstanding between the marketing department and the accounts department. Either way, it's probably worth spending some time trying to get to the bottom of it instead of just acquiescing to the request to issue an invoice (if that is not your organisation's normal practice).
As a workaround, you could suggest coming up with a letter or other document which might address the corporation's internal requirements or SOP's.
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